The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-26
THE WOOL TRADE.
A Chicago Paper Chuckles Over Alleged
Losses of the Boston Dealers.

"A chicago Paper ChuckIes over Alleged
Losses of the Boston Dealers.
CHICAGO, Aug. 25.-A morning paper says
'.Wool is dull, and to say that is to say that
wool is the deadest thing extant above ground.
The month of june. which is distinguished for
the funerals of several speculative deals. gave
birth to a very lively and characteristic boom in
wool. Boston dealers had made up their minds
not to let the bold Chicago buyers repeat their
triumphs of last year, and accordingly had their
agents early in the country Offering farmers
from one to three cents more for their feeces
than was warranted by the market prices then pre-
vailing. Wool-erowers were delighted with the sit
uation. There was shout that wool was too low.
Estimates were produced showing shortage in
the domestic clip of from 10 to 20 per cent. on
account of a severe winter in the Territories and
drought in other sections. The Australian and
European clips were also reported short and
manufacturers were known to be but lightly
stocked. The statistical situation seemed in
favor Of higher prices, and the honest farmer,
who had not kept track Of statistics, allowed his
clip to slip through his hands at several cents
per pound advance on the expected price. For
three or four weeks every body that had dollar
to invest went wool gathering Local specula-
tors and buyers most of them merchants with
accounts against the farmers, quickly heard OF
the bright outlook for WOOL and contracted for
every fleece, whether sheared still on the
sleeps back, that could be found in the
neighborhood. Thus this years clip passed in
few weeks from what 10 known in the trade as
first hands. Eastern and Chicago and ST. Louis
dealers had bought literally, but the great bulk
Of the clip was captured by local buyers and in
their hands it still rests. Meantime in the wool
market proper, the places where manufacturers
buy their raw material, there were develop
ments. Manufacturers did not seem to want
wool at any price. Furthermore, the course Of
London prices did not indicate any fear Of
shortage in the old world production of wool.
Under these circumstances nothing but stubborn
would keep prices up. Eearly in July manu-
facturers bought little, and in order to catch
their orders, dealers made concessions, and
prices began to sag For six weeks there has
been no change in the situation, except that
prices have been weakening steadily,
and are now from two to three cents
per pound lower than in June. Manufacturers
there is no chance for profit In the wool goods
market The bulk of this years clip 10 still in
the country, and the holders decline to part with
ounce OF it at the reduced prices, preferring
to hold it indefinitely rather tba an take loss os
to 10 per cent. AS try banks are willing
lenders wool collateral. the holders are in
a strong position. Consequently things at q
standstill. The receipts at this point for the
first seven months of 1887 have been less than
pounds compared with last years receipts
There is falling off in receipts at Eastern
points, but not great, proportionatey as
here, Eastern dealers having bought more heav-
lily; and. it ia said more rashy in June than the
Chicago men, The wool interests of Chicago,
notwithstan 6ing this years light receipts. have
not suffered in comparison with other wool GEN.
tiers. Chicago dealers undoubtedly hold some of
the high priced wool, but enough to keep
them from ehuckling when they think how the
honest farmer has profited at the expense of the
rash and greedy Bostonlans"